Question #1 Laurel, Inc., and Hardy Corp. both have 9 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par...

Question #1 Laurel, Inc., and Hardy Corp. both have 9 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel, Inc., bond has 4 years to maturity, whereas the Hardy Corp. bond has 16 years to maturity.Required:(a)If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds? (Do not include the percent signs (%). Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))Percentage change in price Laurel________ % Hardy_________ % (b)If interest rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of these bonds? (Do not include the percent signs (%). Percentage change in priceLaurel _____ % Hardy______ % Question #2Paul Adams owns a health club in downtown Los Angeles. He charges his customers an annual fee of $550 and has an existing customer base of 620. Paul plans to raise the annual fee by 6.7 percent every year and expects the club membership to grow at a constant rate of 2.8 percent for the next five years. The overall expenses of running the health club are $74,300 a year and are expected to grow at the inflation rate of 1.2 percent annually. After five years, Paul plans to buy a luxury boat for $493,000, close the health club, and travel the world in his boat for the rest of his life.Required:What is the annual amount that Paul can spend while on his world tour if he will have no money left in the bank when he dies? Assume Paul has a remaining life of 29 years and earns 8.8 percent on his savings. Annual withdrawal$ ____________________Question #3Suppose the real rate is 8.1 percent and the inflation rate is 1.5 percent.What rate would you expect to see on a Treasury bill? (Do not include the percent sign (%).